Cahners In-Stat Group Expects Cable Modem Shipments to Grow By 60% in 1999.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 11, 1999--Cahners In-Stat Group's recently completed research of the cable modem market shows that cable modem unit shipments will grow by 60 percent in 1999.

North America drives the cable modem market and will account for more than 50 percent of cable modem unit shipments through 2003. In 2000, unit shipment growth will increase to 120 percent as the DOCSIS standard cable modems become widely available at retail in North America.

"The quick move from DOCSIS 1.0 to DOCSIS 1.1 will cause consumer confusion in North America in 1999," said Michelle Abraham, senior analyst for the Multimedia Service.

"The rollout to retail in North America has already been pushed into 1999 and the headache for all will be lessened if cable modem vendors wait for DOCSIS 1.1 compliant modems before selling through retail." Cable modem vendors are expected to have DOCSIS 1.1 modems certified and available at retail in late 1999.

According to Cahners In-Stat Group, cable modem average selling prices (ASPs) will fall each year due in part to integration among the semiconductor components enabling component cost declines. "Cable modem revenues will hit $800 million in 20rough with Cable Modems, No. MM9814IF, identifies various cable modem technologies and implementations and eforecasts of worldwide unit shipments and revenumore information on Cahners In-Stat Group's serStat Group will publish quarterly cable modem market share and forecasts as part of its new Analog and Digital modem quarterly series.

Headquartered in Newton, Mass., Cahners In-Stat Group is a high-technology market research firm with comprehensive understanding of the computer Cahners In-Stat Group online at http://www.cahnersinstat.com.